The Influence of Frequency Containment Reserve Flexibilization on the Economics of Electric Vehicle Fleet Operation

Abstract

Simultaneously with the transformation in the energy system, the spot and ancillary service markets for electricity have become increasingly flexible with shorter service periods and lower minimum powers. This flexibility has made the fastest form of frequency regulation - the frequency containment reserve (FCR) - particularly attractive for large-scale battery storage systems (BSSs) and led to a market growth of these systems. However, this growth resulted in high competition and consequently falling FCR prices, making the FCR market increasingly unattractive to large-scale BSSs. In the context of multi-use concepts, this market may be interesting especially for a pool of electric vehicles (EVs), which can generate additional revenue during their idle times. In this paper, multi-year measurement data of 22 commercial EVs are used for the development of a simulation model for marketing FCR. In addition, logbooks of more than 460 vehicles of different economic sectors are evaluated. Based on the simulations, the effects of flexibilization on the marketing of a pool of EVs are analyzed for the example of the German FCR market design, which is valid for many countries in Europe. It is shown that depending on the sector, especially the recently made changes of service periods from one week to one day and from one day to four hours generate the largest increase in available pool power. Further reductions in service periods, on the other hand, offer only a small advantage, as the idle times are often longer than the short service periods. In principle, increasing flexibility overcompensates for falling FCR prices and leads to higher revenues, even if this does not apply across all sectors examined. A pool of 1,000 EVs could theoretically generate revenues of about 5,000 EUR - 8,000 EUR per week on the German FCR market in 2020.Comment: Preprint, 23 pages, 21 figures, 10 table